Ruslan Pukhov
Director of AST Center

Igor Dmitrievich, tell us, please, about a composition of financial and industrial group "Marine technology". Is any extension of its participants number planned ?

Presently, the financial and industrial group is including : designer - "Rubin", main manufacturer - "Admiralty shipyards" and financial link - Inkombank. Among the participants of the group there are also " Rassvooruzhenie " daughter enterprise and the First Institute of Navy as associate members. Now, the admission procedure is under way concerning two other members: North Dvina Enterprise "Asterisk" and the submarines plant of Komsomolsk-on-Amur. These members will harmoniously complement our potential. "Asterisk" is the largest ship repairyard in European region, capable to perform repair operations of any nature. The Komsomolsk-on Amur enterprise will be actively involved in construction and overhauling of submarines, when the markets of South-East Asia will be opened.

I do not intend to extend the group size, because I believe the huge structures are scarcely controllable. Divergent opinions and interests appear and as a result you loose time on discussions. The most difficult stage, establishment stage we have passed. Neither theory, nor practice of the financial industrial group operation exists in Russia, although, ca. 80 groups are already registered. We spent two years to choose, how to make the group structure and to put right the financial flows. Two years ago the banks have not been interested in investments in the industry. It was possible to have huge benefits by putting money in circulation in conditions of high inflation. Now, the inflation was reduced and banks begin to be oriented on more long-term projects, which will allow them to increase their resources by civilized methods.

On the 26 Decembers 1997, we began to build the first commercial submarine and this is the first modest result of activity of the FIG "Marine technology". It becomes absolutely necessary to organize a service and supply of spare parts for our exported technology. To create computer database about stocks, spare parts, which must be often exchanged. But all this is still only in our plans.

How profits will be distributed among the financial industrial group members after selling the first "Amur"?

Each of them will have a share of profits proportional to corporate shares, but before speaking about profits distribution, it is necessary to pay back credits. Although, they are given on easy terms, their amount will be considerable. The rest of money will be duly invested in the development of production and construction of new submarines.

The press has published several times a news about Inkombank intention to collect funds ca. billion dollar for financing the financial industrial group "Marine technology". Is this true ?

This figure is strongly overstated. Inkombank fulfils its obligations and has transferred the first portions. It can in future attract also other banks for financing the FIG, such as BaltONEKSIM bank and some other. For a moment, it is not on our agenda, but I do not exclude the possibility of involvement in the financial industrial group of other one or two powerful banks.

Do you intend to transform the FIG into some more consolidated structure, for example, a concern ?

In fact the financial industrial group is a very soft form of association. Each member preserves the legal status, bank accounts, and this is guaranteed by corresponding contracts and liabilities. There were suggestions to create the concern at once. I was categorically against and in our conditions this is just impossible to organize the concern at once. There is no juridical basis even for operation of the financial industrial group, to say nothing about a concern. Maybe after five years we will make also the following step to closer integration, but now the conditions are not mature for doing so.

What is your attitude to the Military Industrial Complex restructuring program prepared by the ministry of economy?

I was present at the meeting of the government of Russia, held on the 25 December of the previous year, where Yakov Moisseyevitch has presented this program. I supported his proposal to send back the program for further elaboration, because there were many blank places. I consider also the attempt by a single decision to create the concerns being a subject of the program, as similar to trying to cross a huge precipice in one step.

But the restructuring is necessary, because in the Soviet times only surface ships were managed by ten design departments, and submarine - by three. In France exists a single unified design office of marine technology. Therefore now the state must decide, who will obtain the state order, and who will not. Absolutely, this question is very complex and hurts the social issues. But it is necessary to solve it.

Now it is already clear that the fuel-energy complex and the agroindustry complex are lobbying their interests in administration and the Federal Assembly more efficiently, than the military industrial complex. Will you create some lobby structures representing your interests?

I would not say that the defense industry is lagging behind other. The defense industry guys are abundantly present in Moscow and managed to obtain in this field many good things, especially in the area of missile engineering, space, and etc.. The shipbuilding is not represented in Moscow and, therefore, we have difficulty to act even from purely technical point of view. We have not practiced it as yet. Moreover, lobbyists are an absolutely special cohort with certain character, having a capacity to penetrate into administration organisms and inspiring a personal confidence. We have to look for, as yet, so that they were able not only to bear attache cases.

What is your opinion concerning the military technical cooperation reform, which occured in August 1997?

If we consider a distant future, "Rossvooruzhenie" and "Russian technologies" and "Promexport" are temporary structures. The State has the Ministry of Foreign Economic Relations, where are employed people dealing professionally with these issues. The State has found it necessary, as yet, to create a one more structure, because present conditions are such, that powerful and focused actions on potential buyers are needed.

How do you see the future of the military industrial complex in Russia. Now many people say that Russia shall never be able to manufacture a complete spectrum of armaments?

Due to its historic predestination and geographic position, Russia manufactured and shall manufacture a complete spectrum of armaments. Whether we want or do not want, we have to be powerful. It is impossible to desert one pole of force in the world. Now, this has been realized also in Europe and they stopped to rejoice themselves of the extraordinary weakening of our country. Of course, Russia shall never manufacture armaments in such amount and such variety of different types. One has to have enough high-efficiency, multifunctional arms in order to confront contemporary threats.

And can China really take the vacant place of superpower?

Now it is sufficiently powerful and continues to cumulate forces, but its geographical position is such, that it is difficult to China to become world power.

The Central Design Bureau MT "Rubin" and the financial and industrial group "Marine technology" carry out a very reserved information policy, which differs noticeably from high-cost advertising campaigns of many other enterprises of the military industrial complex?

A submarine this is a specific product, which once made does not change for a long time. Therefore, we have carried out the intensive advertising campaign and continue to attract interest, taking part in exhibitions, publishing articles in specialized magazines and occasionally, by publishing advertisements. The fact is that the ads are very costly and every time we seriously evaluate the ad effectiveness. I don't want to use the advertisement in order to be fashionable in Russia. We are a serious government company and we will never allow to make such steps. We need not to attract the attention of senior executives of our country with the help of newspaper publications. If needed, we will be always received by the state's administration, because they know we will not come to them with peanuts.